Hummingbird Resources plc announced it has been granted the mining licences for the Kouroussa gold project in Guinea.
The miner will pay an initial consideration of £10 million to Cassidy Gold Corp, which will be met by the issue of 35,248,441 new ordinary shares in Hummingbird at a price of 28.4 pence per ordinary share.
TERMS
The licences have a 15 year renewable term with the construction of the mine to start within one year.
Hummingbird will pay 5% royalty to the Guinean government, 1% contribution to Local Development Fund and 30% tax on profits.
The government has the right to a 15% non-dilutable free carried interest in the share capital of Kouroussa Gold Mine SA (Hummingbird’s subsidiary which owns the project), with the right to acquire a further 20% participating interest for cash.
Chief executive Dan Betts said that Kouroussa would see Hummingbird transform from a single asset to a multi-asset producing gold company in multi-jurisdictions.
“I would like to thank the Government of Guinea and the people of Kouroussa.
“We look forward to working with them, and all our stakeholders, in developing and running a world class gold mine that embodies industry leading environmental, social and governance standards that the country, local people and the company can be proud of.”